MUMBAI, April 27 -- The Reserve Bank of India (RBI) on Monday issued final rules on banks' credit risk framework, tightening capital treatment for credit card borrowers while easing requirements for exposure to unrated companies and smaller businesses, as part of a broader overhaul aligned with Basel framework. The framework will take effect from 1 April 2027.

The final rules follow stakeholder feedback on a draft issued on 7 October 2025. They are based on the Basel framework, which allows banks to compute credit risk capital using either the Standardized Approach (SA) or Internal Ratings Based (IRB) approach. RBI has decided to proceed with the Standardized Approach for banks under its jurisdiction.

"The Reserve Bank of India has deci...